Social Responsibility

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Social Responsibility|
This Document Differentiates And Defines Core Social Responsibility Concepts, How They Intertwine The Views Of Such, While Debating The Benefits Of Social Responsibility In The Corporate World.
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Shannon McDermott|
11/20/2012|
Course: Introduction to ManagementLecturer: Miss. Grant|

This Document Differentiates And Defines Core Social Responsibility Concepts, How They Intertwine The Views Of Such, While Debating The Benefits Of Social Responsibility In The Corporate World.

Title Page

Social Responsibility Defined ................................................ Differentiation of Social Responsibility concepts ................... Four approaches to social responsibility..................................... Debate on Social Responsibility ............................................. Conclusion ................................................................................ Bibliography .............................................................................

How Social Responsibility differs from Social Obligation, the Socioeconomic View and Social Responsiveness

A socially responsible organization goes beyond what it is obligated to do or chooses to do because of some popular social need and does what it can to help improve society because it is the right thing to do. Social responsibility is defined as a business’s intention, beyond its legal and economic obligations, to do the right things and act in ways that are good for society. A socially responsible organization does what is right because it feels it has an ethical responsibility to do so.

Social obligation occurs when a firm engages in social actions because of its obligation to meet its economic and legal responsibilities. The organization does only what it is obligated to do and nothing more. This idea reflects the classical view of social responsibility that says that management’s only social responsibility is to maximize profits. By the same token Executives are hired to maximize profits; that is their responsibility to their company’s shareholders. Even if executives wanted to forgo some profit to benefit society, they could expect to lose their jobs if they tried—and be replaced by managers who would restore profit as the top priority. The movement for corporate social responsibility is in direct opposition, in such cases, to the movement for better corporate governance, which demands that managers fulfill their fiduciary duty to act in the shareholders’ interest or be relieved of their responsibilities. That’s one reason so many companies talk a great deal about social responsibility but do nothing—a tactic known as green washing.

In contrast to social obligation, however, both social responsiveness and social responsibility reflect the socioeconomic view. According to this view a manager’s social responsibilities go beyond making profits to include protecting and improving society’s welfare. This view is based on the belief that corporations are not independent entities responsible only to stockholders, but have an obligation to the larger society. Social responsiveness occurs when a company engages in social actions in response to some popular social need. Managers are guided by social norms and values and make practical, market-oriented decisions about their actions. In the same breath, Toms.com is a shoe design and marketing company founded by Blake Mycoskie, an entrepreneur from Arlington, Texas, in 2006. The company designs and sells lightweight shoes with the unique Alpargata design from Argentina. But, although Toms needs to make a profit to remain in business, it’s not all about money. The company operates a not for profit subsidiary, called Friends of Toms that manages the One for One arrangement. This social responsibility program...
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